New tax rate to help power companies save Rs 6,000 crore, says CIL boss
KOLKATA: Power generation companies will save close to Rs 6,000 crore this year due to favourable changes in taxation, Coal IndiaBSE 1.94 % chairman Gopal Singh said on the sidelines of the company’s 43rd annual general meeting in Kolkata on Thursday.
Prior to GST, coal was taxed at 11%. This has been reduced to 5% under GST. Thermal power generation companies would buy around 600 million tonnes of coal at the reduced tax rate, resulting in the savings.
Coal India is also looking at diversifying into iron ore, bauxite, copper and nickel mines. “We have the expertise to diversify,” said Singh. Coal India plans to appoint consultants to study prospects of mining.
“We have a lot of experience in mining, hence metal or mineral mining would be an area where we might be comfortable venturing into.” The company has already entered solar and thermal power generation.
It has decided to set up 10,000 mw of solar capacity as well as 10,000 mw of thermal power capacity. It is also looking at coal bed methane and coal mine methane generation.
The draft National Electricity Plan 2016 states that India does not need additional non-renewable power plants till 2027 with the commissioning of 50,025 mw coal-based plants under construction and 100,000 mw of renewable power capacity.
Source: economictimes.indiatimes
